Gulfsands Petroleum PLC

Gulfsands Petroleum PLC is an independent oil and gas exploration, development and production group based in Houston, Texas. Gulfsands has development, exploitation and exploration projects in the USA (offshore Gulf of Mexico and onshore Gulf Coast) and the Syrian Arab Republic and has signed a memorandum of understanding relating to a large project in Iraq.

Ordinary shares of the Company trade on the Alternative Investment Market ("AIM") of the London Stock Exchange under the symbol GPX.

In the USA Gulf of Mexico, Gulfsands owns interests in 64 offshore blocks comprising approximately 216,000 gross acres which includes 39 producing oil and gas fields offshore Texas and Louisiana. Proved and probable reserves are approximately 30.3 billion cubic feet of natural gas equivalents, consisting of 14.94 billion cubic feet of natural gas and 2.56 million barrels of oil as of 30 June 2005. For the first half of 2005 net working interest production to Gulfsands from these 39 fields has been at an average daily volume of between 2,500 -- 3,000 barrels of oil equivalent per day.

In the Syrian Arab Republic, Gulfsands owns a 50% working interest in Block 26. This block located in northeast Syria covers an area of approximately 11,000 square kilometers, and surrounds areas which currently produce over 100,000 barrels of oil per day from existing fields. Gulfsands has identified 31 exploitation and exploration prospects and leads with mean resources potential exceeding 1 billion barrels of recoverable oil. The first well is anticipated to be drilled by Gulfsands during the first half of 2006.

Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry of Oil in Iraq for the Misan Gas Project located in Southern Iraq and is currently working towards the execution of a definitive contract for the project. Gulfsands has completed a feasibility study and expects to conduct further technical work and commercial discussions with the Iraq Oil Ministry. The Misan Gas Project is a midstream project that gathers gas that is currently being flared at the oil fields in Southern Iraq, brings the gas to a central processing plant to clean it of impurities and remove the light hydrocarbon liquid fraction (Natural Gas Liquids), and then transmits the natural gas for further distribution and use in Iraq. The extracted hydrocarbon liquids are then transmitted to a southern port for storage, offloading and export. Gulfsands has a 100% interest in the Misan Gas Project.

Gulfsands formed a subsidiary company, Darcy Energy LLC ("Darcy Energy"), to conduct onshore USA Gulf Coast field re-development and exploration. Darcy Energy has acquired interests in two onshore projects in which discoveries have been made on both of them. Darcy commenced first production in the summer of 2005.

Well, its nice to see the rise continuing onwards from where we left it end of last year.

The Tigris well now is into the final stages of drilling so there should be some speculative buying expected, and of course should it be leaky then some insider buying or selling......so its interesting its been rising of late now we are "in the zone" of the drill.

A nice little pre-spud summary of what the hopes are for the Tigris drill :


1. Emerald Energy is talking up the potential of its Tigris structure onshore Syria, where drilling of the Tigris-1 well is expected to commence in September. The company highlighted new information released by operator Gulfsands Petroleum, the operator of Block 26 , following an economic valuation by Ryder Scott Company, L.P. The latter has completed an economic valuation of the probable and possible reserves (unrisked) on Tigris, which can be viewed on Emerald's website ( www.emeraldenergy.com ). On 30 January 2006, Ryder Scott completed a reserves study on the Tigris structure in which two cases were considered as there was insufficient data available at that time to determine with certainty the hydrocarbon fluid contained within the structure. This reserves study classified probable and possible reserves and prospective resource as follows: If Tigris is a natural gas accumulation, Ryder Scott has classified 442 Bcf of gas as probable reserves, a further 442 Bcf of gas as possible reserves, and a further 3.447 Tcf of gas as a prospective resource. In summary, total estimated hydrocarbon potential for probable and possible reserves and prospective resource in this case is 4.33 Tcf of gas, equivalent to 722 million boe. If Tigris is an oil accumulation, Ryder Scott has classified 104 million bbl of oil and 64 Bcf of gas as possible reserves and a further 408 million bbl of oil and 245 Bcf of gas as prospective resource. In summary, total estimated hydrocarbon potential for possible reserve and prospective resource in this case is 512 million bbl of oil and 308 Bcf of gas, equivalent to 563 million boe. If Tigris is a natural gas accumulation, Ryder Scott determined the probable reserves net to Emerald after applying the fiscal terms of the production sharing contract are 102 Bcf of gas having a net present value, discounted at 10%, of $233 million. In addition, the accumulation rates 75 Bcf of gas of possible reserves net to Emerald having a net present value, discounted at 10%, of $261 million. In summary total estimated probable and possible reserves for the natural gas case is 177 Bcf of gas (30 million boe) with a net present value of $494 million. If Tigris is an oil accumulation, Ryder Scott determined the possible reserves net to Emerald after applying the terms of the production sharing contract is 19.4 million bbl of oil having a net present value, discounted at 10%, of $452 million. Emerald holds a 50% interest in Block 26 in its 100% subsidiary SNG Overseas Ltd.

The strength continues, roll on some good news, fingers crossed :)

Very nice USA update, and now we await drill results on the big Tigris well in Syria :


http://www.investegate.co.uk/Article.aspx?id=200701150700284821P

Gulfsands Petroleum PLC
31 January 2007

Rig Contract Signed for Block 26, Syria

New Exploration Well on Block 26, Syria

Drilling Update - Tigris-1 well, Syria


London, 31st January, 2007: Gulfsands Petroleum plc (AIM: GPX), the oil and gas production, exploration and development company with activities in the U.S.A., Syria and Iraq is pleased to announce that the Company has executed a formal contract for a drilling rig to be used for drilling the next exploration well on Block 26, Syria in February 2007.

Rig Contract Executed - Khurbet East Exploration Well

Gulfsands, the operator and 50% working interest owner in Block 26, Syria, has executed a formal contract with Crosco, a drilling company based in Croatia, for the Crosco 602 rig, a 2,000 horsepower drilling rig to be used for drilling one exploration well scheduled to commence by mid February of this year. The Crosco 602 rig will be utilized to drill the Khurbet East exploration prospect ('KHE 1 ') and has now been mobilized to the drill site.

KHE 1 is a fault-bound structural culmination, with closure mapped at multiple potential reservoir levels. These include reservoirs of Cretaceous, Triassic and Palaeozoic age. The well is located approximately 12 kilometers southwest of the Souedieh Oil Field and 12 kilometers south of the Rumailan Oil Field, in the northeastern portion of Block 26. The total drilling depth of the KHE 1 well is expected to be approximately 3,700 meters and require approximately 90 - 100 days to drill and evaluate.


Tigris-1 Update

The Tigris-1 exploration well is currently drilling ahead at a depth of 4,391 metres to a planned total depth as previously announced of approximately 4,500 metres.

Following the drilling of the KHE 1 well the Company is planning to drill its fourth commitment well on Block 26 once the rig currently drilling the Tigris-1 well is returned to Gulfsands around July 2007.


Gulfsands' CEO, John Dorrier, said:

'We are very pleased to have reached agreement with Crosco for the use of the 602 rig in a market which is increasingly tight for equipment of this size and capability. With the anticipated return of the current rig later in the first half of the year, we can now look forward to being able to undertake a nearly continuous drill programme on Block 26 during 2007.'

Why is GPX dropping 10p on the above news?

Tigras was expected to be at full depth and tested this week, but now looks to be 2/3 weeks late, so some of the traders in just to get the good news have bailed out but will be back in, in the next 2 weeks and the share price back up to, ready for the jump to about 145+ on the good news i hope.

Nov 06 Research report now available to read (PDF file)

http://www.gulfsands.net/i/pdf/gulfsands061106outlook.pdf

http://www.zawya.com/Story.cfm/sidKUN0077070131171527/secCountries/pagSyria/chnSyria%20News/obj224038CA-8F1A-11D4-867000D0B74A0D7C/

Oil prospects in Syria promising - minister

DAMASCUS, Jan 31 (KUNA) -- Syrian Minister of Oil Sufiyan Alaw said Wednesday the oil and gas reserves in Syria were large and there were no concerns about the oil prospects in the country.

Alaw said his ministry was making efforts to contain the slow gradual decrease of oil production through enhanced prospecting operations and development of existing oil fields.

There are 13 foreign oil companies prospecting for oil nationwide in addition to two firms that are developing the existing oil fields to enhance their output, he disclosed.

The Oil Ministry is poised to declare, before the end of the first quarter, the discovery of six on-shore gas and oil locations in a total area of 30,000 square kilometers, in addition to four off-shore locations in the Mediterranean Sea, he added.

The minister urged global oil and gas firms to offer bids for prospecting and extracting operation when the ministry declares the oil and gas locations.

The gas prospects are also promising thanks to the efforts of the Syrian Oil Corporation that led to the discovery of gas fields in Al-Kalamon area, he added.

Syria's oil output went down from 600,000 to 4,200 barrels a day. It is expected to stand at 300,000 barrels a day in 2025.

On the contrary, the gas production in the country is expected to grow from 23 million presently to 40 million cubic meters a day in the coming years.

in the meantime GPX plummets with report of a dud well ...... nothing that surpising for as i keep saying, commercial finds are about 1:4 if you are very good and lucky.

didnt think a positive outcome of tigris was factored into the price, but hey, must be wrong, seems to be quite a hard hit though...

the market does not like disappointment .... as you will see with all minnows, the world and his wife and their dog start jumping around when the mere thought of a drilling is suggested ..... if it proves to be a dud, as so often, they all pile out with a vengeance .... MMs don't want the stock anyway, so mark down the price even more heavily

What is boosting GPX today...up 14p?

they found something called oil

LONDON (AFX) - Gulfsands Petroleum PLC and Emerald Energy PLC said they have encountered hydrocarbons during early drilling at their Khurbet East exploration well in Syria.

The well is on schedule and drilling will continue to evaluate the underlying areas.

'The ultimate commerciality of the hydrocarbons encountered at Khurbet East can only be determined after further work including production testing and appraisal drilling,' said Gulfsands chief executive John Dorrier.

Gulfsands and Emerald own a 50 pct interest each in the block which contains the well, and Gulfsands is the operator.

Positive article re GPX HERE

A new article is available, click HERE

Recent CEO interview, click HERE

Saw a presentation last night, and I have to confess they look a good bet, if you ignore the political risk.

New article, click HERE